PROSPECTIVE BUSINESS COOPERATION IN INDONESIA S RENEWABLE ENERGY

Transcription

1 PROSPECTIVE BUSINESS COOPERATION IN INDONESIA S RENEWABLE ENERGY Workshop Remarkable Indonesia ASPAC Forum Bavaria, Germany Dr.-Ing. Ilham A. Habibie, MBA Indonesia Head of Chamber of Commerce, Germany, Austria and Switzerland Committee (KIKJAS) 1

2 COUNTRY s SNAPSHOT & ECONOMIC UPDATES Geographical area : 1.9 million sq km (as large as Europe or USA) Population: 240 million people Major Cities population: Jakarta: 9.5 million, Surabaya: 5 million, Bandung: 3 million, Medan: 2.1 million Demographic 4 th most populous nation in the world, after China, India and USA Of the 240 million people, 60% is under 39 years of age, contributing a dynamic workforce GDP of more than $700 Billion in 2010, the 3 rd fastest growing economy in Asia and the largest economy in SE Asia. In 2010, the economy grew at 6.1% and is forecasted to climb to 6.3% by In need of Infrastructure for manufacturing: modernization of machineries, energy supply, roads, and ports 2

3 GERMAN INVESTMENT IN INDONESIA Total: USD 465 million Source: BKPM,

4 INDONESIA ENERGY CONDITION 2009 National Primary Energy mix 2009, 1,065 Million SBM Renew able 4,07% Natural Gas 18,48% Coal 34,47% Fossil Fuel 42,99% 1. Access to energy is still limited: a. Electricity ratio in 2008 is 66% (34% of households are still without electricity) b. Infrastructure development in energy (remote area, villages and remote island are still deprived of energy) 2. The annual increase in energy demand is at 7%, and by far not being matched with adequate energy supply 3. Dependency on fossil fuel is still very high and fossil fuel reserve is diminishing 4. Very limited implementation of renewable energy and lack of energy conservation awareness 5. Financing for the development of renewable energy is very inadequate Source: Directorate General for Renewable Energy,

5 ENERGY POLICY DIRECTION BAU** PERPRES 5/2006 VISI 25/25 4,300 Million SBM 3,1% 34.6% 3,200 Million SBM 2,852 Million SBM ENERGY CONSERVATION (33,85%) RE (Renewable Energy) Coal Natural Gas Fossil Fuel 1,131.3 Million SBM 4,4 % 30,7 % 21 % 43,9% 20,6% 41.7% 17% 33% 30% 20% 25 % RE (Renewable Energy) 22 % Coal 23 % Natural Gas 30 % Fossil Fuel ENERGY DIVERSIFICATION 2010* Source: *Forecast 2010, DEN , **BAU EBTKE

6 ENERGY RESOURCES AND PRODUCTION NO RENEWABLE ENERGY RESOURCES (R) INSTALLED CAPACITY(IC) RATIO IC/R (%) = 4/3 1 Large Hydro Power 75,670 MW 5, MW Geothermal 29,038 MW 1,189 MW Mini/Micro Hydro Power MW MW Biomass 49,810 MW 1, MW Solar Cell 4.80 kwh/m 2 /day 13.5 MW - 6 Wind 3 6 m/s 1.87 MW - 7 Uranium No *) Only in Kalan West Kalimantan NON RENEWABLE ENERGY MW (e.q. 24,112 ton) for 11 years *) 30 MW 1.00 RESOURCES (R) RESERVE (R ) RATIO R /R (%) PRODUCTION (PROD) RATIO R /PROD (ANNUAL)*) = 4/3 6 7 = 4/6 1 Fossil Fuel (billion barel) **) Natural Gas (TSCF) Coal (billion ton) Coal Bed Methane/CBM (TSCF) *) Assumption: no additional new reserve find **) Including Cepu Block Source: Directorate General for Renewable Energy,

7 PRIME POLICY ON RENEWABLE ENERGY 1. Energy conservation in order to improve efficiency of energy consumption from the supply side and demand side, such as in industry, transportation, households and commerce. 2. Energy diversification to increase the segment of new form of renewable energy within national energy mix (supply side), such as: New Energy a.liquefied Coal b.coal Bed Methane c.gasified Coal d.nuclear Energy e.hydrogen f.methane Renewable Energy a.geothermal, (high capital investment, high complexity) b.run of River (Hydro), c.bioenergy, d.solar (problem of storage and feed-in tariff) e.wind (Cortez factor: not viable within 5 degree from equator and feed-in tariff) f.ocean Current. (high capital investment) Source: Directorate General for Renewable Energy,

8 Power Generation Capacity (type and ownership) Existing Total Capacity 29,373 MW Operational Data 2008 CCPP: combine cycle Power Plant; GTPP: Gas Turbine PP; HEPP: Hydroelectric PP Source: PLN,

9 GENERATION AND DEVELOPMENT PLAN OF POWER CAPACITY (INCL. GREEN & NEW ENERGY DEVELOPMENT) Total Capacity of Green & New Energy PP to be built in the period is 11,540 MW (total capacity of Geothermal PPs, Hydro Electric PPs-HEPP, Mini HEPPs, and Small-scale Green & New Energy PP) 57% of the total capacity of Green Energy PP will be expected from IPPs Tahun Total PLN Coal STPP 3,291 4, ,479 2, , ,007 16,421 Comb. Cy. PP ,500 2,250-6,447 Gas TPP ,065 1,280 3,825 Diesel PP Geo. PP Mini HEPP HEPP , , ,321 Total PLN 3,625 4,985 1,558 2,384 3, ,299 3,242 4,686 5,175 31,958 IPP - Coal STPP ,649 1,703 2,212 2,160 2,550 1,930 1, ,276 Comb. Cy. PP Gas TPP Diesel PP Geo. PP , ,415 Mini HEPP HEPP Total IPP 531 1,262 3,028 2,601 4,945 2,302 3,191 2,353 1,921 1,390 23,525 PLN+IPP Coal STPP 3,317 4,981 3,483 3,182 4,415 2,270 3,750 2,130 1,417 3,752 32,697 Comb. Cy. PP ,500 2,250-6,997 Gas TPP ,065 1,280 3,925 Diesel PP Geo. PP ,000 2, ,990 Mini-Hydro PP Hydro Electric PP , , ,283 Total PLN+IPP 4,156 6,248 4,586 4,985 8,643 2,608 5,490 5,596 6,607 6,565 55,484 SMALL SCALE GREEN & NEW ENERGY PP Source: PLN, ,703 9

10 HYDRO POWER POTENTIALS Significant resource potentials, 75,000 MW Only 4,000 MW has been exploited (around 6%) Minihydro Power Plants (between 1-10 MW capacity) amounted around 100 MW Relatively low market barrier (mature technology, low renewable energy investment) Market competition is not high Long term PPA with PLN (15 years, extendable) Good Feed-In Tariff and Regulation (Energy Ministerial Decree No.31, 2009), US$ 8.9 cent per kwh Government Guarantee to PLN (Finance Ministerial Decree No.77, 2011), safeguarding Investors 10

11 HYDRO POWER POTENTIAL 11

12 In ASEAN, Indonesia is potentially the largest producer of biomass... Available biomass for power generation in ASEAN countries Source: Saku Rantanen (Pöyry),

13 BIOMASS WASTE POTENTIAL FOR POWER GENERATION 13

14 2 Concessions in NAD province Jaboi Seulawah Agam 45 GEOTHERMAL WORKING AREA (CONCESSION) 4 Concessions in SUMUT Gn. Sibayak Sinabung Gn. Sibual Buali Sipaholon Ria ria Sorik Marapi Roburan Sampuraga 1 Concession di Prov. JAMBI Sungai Penuh 2 Concessions in SUMSEL Lumut Balai Rantau Dedap 1 Concession in SULTENG Marana 1 Concession in GORONTALO Suwawa 2 Concessions in SULUT Kotamobagu Lahendong Tompaso 2 Concessions in MALUT Jailolo Songa Wayaua 1 Concession in MALUKU Tulehu Note: Power plants installed & running 14

15 GOV. FEED-IN TARIFF FOR RENEWABLE Presidential Decree 4/2010 Instruction to PT PLN to accelerate the development of powerplants utilizing renewable energy, coal and natural gas. Ministerial Decree ESDM 31/2009: PLN oblige to purchase electricity produced by small scale and medium powerplants up to 10 MW or their excess capacity utilizing renewable energy; Feed in Tariff: 8.7 cent USD/ kwh Ministerial Decree ESDM 02/2011 Instruction to PT PLN to purchase electricity from geothermal power plants and in regard to electricity purchase tariff. Maximum feed in tariff of 9,70 sen USD/ kwh 15

16 We invite you to invest and to take part in the business of renewable energy in Indonesia 16